* PC makers Dell, HP surge after Lenovo ( LNVGF ) reports revenue

jump

* Estée Lauder climbs after ending merger talks with Puig

* Kevin Warsh to be sworn in as Fed chair later in the

day

* S&P 500 eyes eighth weekly gain, best streak since

December 2023

* Indexes up: Dow 0.82%, S&P 500 0.65%, Nasdaq 0.67%

(Updates with afternoon trading levels)

By Shashwat Chauhan and Medha Singh

May 22 (Reuters) - Wall Street's main indexes rose on

Friday ahead of a long weekend, with the blue-chip Dow hitting a

record high for the first time since the Iran war began, as

investors tracked progress in talks to end the nearly

three-month-old conflict.

The S&P 500 is on track for an eighth consecutive

weekly gain, which would mark its best winning streak since

December 2023.

Most megacap and growth stocks traded higher, with Apple ( AAPL )

up 2%, hitting a market capitalization of more than

$4.5 trillion for the first time.

Semiconductor stocks, a key driver of recent Wall Street

gains, were broadly up with the Philadelphia chip index

rising 2.4%. Qualcomm ( QCOM ) led the pack with a 12% jump.

PC makers Dell Technologies ( DELL ) and HP Inc ( HPQ )

surged over 15% each after China's Lenovo Group ( LNVGF )

reported a better-than-expected 27% jump in quarterly revenue.

In the latest on the Iran situation, Reuters reported that a

Qatari negotiating team arrived in Tehran in coordination with

the United States to try to help secure a deal to end the war

and resolve outstanding issues.

"The market has been working under the assumption that

there's going to be relatively near-term resolution," said

Thomas Hayes, chairman at Great Hill Capital LLC.

"If that assumption proves to be wrong, the market will

catch down very quickly. The market has been trained that

there's an embedded Trump put in the market."

Global stocks have whipsawed since the conflict began in

late February, but hopes of an eventual resolution to the war,

optimism in the AI trade and resilient earnings growth have

propelled U.S. stocks to record highs this month.

The market recovery, however, has faced some hurdles as

investors fret about the inflationary impact of surging oil

prices, pushing government bond yields higher around the world

and hitting risk appetite this week.

At 11:34 a.m. ET, the Dow Jones Industrial Average

rose 408.59 points, or 0.82%, to 50,697.24, the S&P 500

gained 48.08 points, or 0.65%, to 7,493.79 and the Nasdaq

Composite gained 174.66 points, or 0.67%, to 26,467.76.

Seven out of the 11 major S&P 500 sector indexes were

higher, led by information technology.

Meanwhile, government bond yields were steady after Federal

Reserve Governor Christopher Waller said the Fed should axe the

"easing bias" from its policy statement and effectively open the

door to a possible rate hike.

Kevin Warsh will be sworn in as Fed leader at the White

House later in the day, taking over the reins from Jerome

Powell, a pivotal moment for monetary policy and the American

economy.

The CBOE volatility index hit a more than two-week

low ahead of the three-day market holiday, with U.S. markets

shut on Monday for Memorial Day.

Meanwhile, the price-weighted Dow notched its first

intraday record high since February 10, becoming the last of the

three main U.S. stock indexes to hit the milestone.

Among others, Estée Lauder surged 10.5% after the

cosmetics maker and Spanish perfumery Puig ended

talks for a potential merger.

Workday added 3.6% after the human resources

software provider exceeded expectations for first-quarter

revenue and profit.

Advancing issues outnumbered decliners by a 1.3-to-1 ratio

on the NYSE and by a 1.37-to-1 ratio on the Nasdaq.

The S&P 500 posted 27 new 52-week highs and no new lows

while the Nasdaq Composite recorded 100 new highs and 56 new

lows.